COLUMBUS, Ohio: I feel sad for “my” friend Henry Ford. In 1908 he sold the first Model T Ford for $850. In a few years, half the vehicles on American roads, including those in the ditch, were Model T Fords.
Henry Ford accomplished this feat without government support or incentive payments to the buyers. And he never sold one for less than it cost to produce it.
Roughly a hundred years later, Henry’s great-grandson Bill Ford, and the Board of Directors, announced the company would take an immediate write off of $19,000,000,000 after losing $13,000,000,000 in four years of manufacturing an electric pickup, the Ford F-150 Lightning.
How and why did this happen? Bill Ford is a smart man. The Board is comprised of smart business people. But in 2021, President Biden followed the advice of climatologists and announced that any automotive manufacturer that hoped to be in business in ten years had better plan to shut down production of gasoline cars and trucks. All new vehicles would soon be electric, with the power coming from solar and wind.
So, Ford was coerced into spending billions to produce the Ford F-150 Lightning, then sell each one at a $50,000 loss.
Two weeks ago, in “Weekly Comments” I wrote about this situation, without the details. President Trump lifted the Biden-era restrictions on gasoline.
Of course, this is not without controversy. Many well-informed smart folks say that reducing carbon dioxide is more important than allowing us to drive vehicles that we prefer. And if manufacturers lose Billions, that’s better than the Trillions global warming will cost us. With rising ocean levels, coastal cities and communities will be swamped. With rising summer temperatures, the Corn Belt will become the new Cotton Belt.
Meanwhile, Congress left town without solving the over-priced health insurance problem. Here’s why the “Affordable Care Act” is unaffordable. Imagine an auto insurance company that announces they will only insure cars and trucks for lousy drivers. They know the claims will be at least triple the income from premiums, but are counting on the government to keep them in business. Now, this is not exactly how Obamacare was set up. But by setting the rates the same for healthy young folks as for people with chronic diseases and other health problems, it’s logical that healthy people would refuse to buy the insurance. Congress can’t seem to reach a compromise that keeps health insurance subsidies for low-income people, eliminates cheating, and reduces overall health costs for all of us, not just the 20- to 40-million on Obamacare.
I hope you are in the Christmas spirit. Men are glad to have three more days to decide what to buy for the women in their lives. And if you are buying your wife a new vehicle, please consider a Ford. They need a few million sales to make up the $32 Billion lost on Lightning.
Historic (Christmas) quotes by Will Rogers:
“I am too busy replacing presents to write today. I bought some mechanical and electric things for the kids and wore ’em out playing with ’em myself.” DT #120, Dec. 23, 1926
“Merry Christmas, my constant readers, both of you…. Men, act surprised this morning as if you didn’t know the tie was coming.” DT #121, Dec. 24, 1926
“Well, tomorrow is ‘wish’ day. Everybody is ‘wishing’ somebody something, and I guess it’s just as well everybody don’t know what they are being ‘wished.’ But, generally speaking, we do have good cheer in our hearts on Christmas. ‘Course, we can’t hardly wait till the day is over and to get back to our devilment again.” DT # 1379, Dec. 24, 1930
